Prepare the journal entry at june 30 2031 to pay interest

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Reference no: EM13573066

Mellilo Corporation issued $6,000,000 of 20-year, 9.5 percent bonds on July 1, 2011, at 98. Interest is due on June 30 and December 31 of each year, and all of the bonds in the issue mature on June 30, 2031. Mellilo's fiscal year ends on December 31. Prepare the following journal entries:

a.	Prepare the journal entry at July 1, 2011, to record the issuance of the bonds. (Omit the "$" sign in your response.)

Date	General Journal	Debit	Credit
July 1, 2011	Cash
	Discount on bonds payable
	Bonds payable

b.	Prepare the journal entry at December 31, 2011, to pay interest and amortize the bond discount. (Omit the "$" sign in your response.)

Date	General Journal	Debit	credit
Dec. 31, 2011	Bond interest
	Discount on bonds payable
	Cash

c.	Prepare the journal entry at June 30, 2031, to pay interest, amortize the bond discount, and retire the bonds at maturity. (Omit the "$" sign in your response.)

Date	General Journal	Debit	Credit
June 30, 2031	Bond interest expense
	Discount on bonds payable
	Cash

June 30, 2031	Bond Payable
	Cash

Reference no: EM13573066

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